Both he and Shepherdson had predicted very strong second-quarter GDP growth of 4.5 percent or higher.
The numbers were driven by consumers who began spending the tax cuts Trump signed into law previous year and exporters who have been rushing to get their products delivered ahead of retaliatory tariffs.
Ian Shepherdson of Pantheon Macroeconomics said swings in inventories and trade, as well as the fading effects from the income tax cuts could put third-quarter growth at three per cent.
Former President Barack Obama was doubtful the man who followed him into the Oval Office could fix the sluggish USA economy, but a federal report made public Friday provides solid evidence President Donald Trump is doing just that. "It'll be hard to repeat this performance on a sustained basis". And since this increase was driven by trade-war fears (as opposed to an explosion in global demand for tofu), soybean exports will likely fall dramatically in the coming months - and bring U.S. GDP down a bit with them. And the president expects the strong growth to continue in the third quarter (July-September). He also touted the unemployment rate among African American unemployment, saying the country has "achieved the lowest level in history".
President Donald Trump on Friday seized on a strong GDP growth rate for the second quarter of the year to tout the economic gains made during his presidency and argued the U.S. is experiencing an economic boom.
Regarding trade, Trump told reporters, "As the trade deals come in one by one, we're going to go a lot higher than these numbers, and these are great numbers". But Trump's rosy take on the long-term health of the U.S. economy also stood in contrast to assessments that the 4.1% growth last quarter was boosted by a spike in exports driven by trade war fears.
But yes, we can talk all day long about GDP numbers all day long, but that doesn't matter if you just got laid off.
Tiger Woods turns back the clock to move into contention at Carnoustie
It was a tender moment between a father and his kids, but also another reminder that Father Time waits for no one. Spieth had his own issues, of course, kicking away a share of the lead on his way to a fat 76 in the final round.
The department said the world's largest economy expanded at a 4.1 percent annual rate in the second quarter.
The revisions also showed the economy surpassed $20 trillion in nominal dollars in the first quarter.
According to foxnews.com, most economists believe the current rate of growth in the U.S.is unstainable. And he has been trying to highlight economic gains ahead of the midterm elections.
So if we get 3 percent (or more) growth in 2018, President Trump can say he's delivered on a key campaign promise. This year's first quarter was revised to 2.2 percent from 2.0 percent.
Government spending increased at a 2.1 per cent rate, adding 0.37 percentage point to growth. Purchases of new autos were a major factor, along with spending on health care, housing and utilities and food services and accommodations.
Residential fixed investment fell 1.1 per cent. On the plus side, consumer spending was up, reflecting a good job market and growing wages.
"With the year-over-year change in the personal consumption expenditures (PCE) deflator (2.2 percent) as well as the core PCE deflator (1.9 percent) up relative to the past four quarters, the case remains for the Fed to raise the benchmark funds rate".